UBS Group’s (UBS) first-quarter profits fell 64% to 707 million Swiss francs, or about $741 million, missing analysts’ estimates on weak results in investment banking and trading. Meanwhile, revenue dropped 23% to 6.8 billion francs in the first quarter.
“This cocktail of macro issues, geopolitical issues is now coming on,” CEO Sergio Ermotti said in an interview on Bloomberg TV early Tuesday.
“You see a lot of factors that may affect market sentiment — and in that sense you might see volatility — but it’s not the kind of volatility that is translating to client activity. It’s a paralyzing volatility,” Ermotti explained.
UBS’ investment bank reported a 67% decrease in profits to 253 million Swiss francs, the weakest showing in a first quarter since 2009.
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The global wealth management unit’s pretax profit fell 41% from last year to 557 million Swiss francs on low transaction volumes, as revenue weakened 16% to 1.885 billion Swiss francs. It had 15.5 billion Swiss francs in net new money.
Shares traded down about 7% at just under $16 per share on Tuesday.
Wealth Management Americas